I've been in a Partnership LLC with three others for the last 7.5 years. While I was a Limited Partner in the first two years on a provisional basis, I've been a full General Partner ever since. I attend and contribute to the monthly partner meetings, and I am in charge of multiple aspects of the way the business is run. I noticed that my K-1 this year said Limited Partner, so I looked it up. It seems that our CPA forgot to switch me several years ago. I realize there are liability advantages to staying as a Limited Partner, but from what I've read, if something disastrous were to occur, I could easily be proven to be a General Partner in court, despite what it says on my tax forms. My income calculation uses the exact same method as my other partners, so I don't see that changing with the switch. Is it worth it for me to inform our CPA to change me over next year? Are there any advantages to this, or is it only really accomplishing some bookkeeping accuracy?
